The Ibovespa erased steep early losses to finish 0.3% higher at 189,307 on Monday, after initially tumbling on escalating conflict in the Middle East. Joint US-Israeli strikes on Iran shook global markets at the start of the session, but the Brazilian benchmark was later lifted by a powerful 5% jump in Petrobras, as the shutdown of the Strait of Hormuz drove oil prices sharply higher. The energy-led rebound was reinforced by gains in Eletrobras, up 1.6%, and B3, which advanced 3.5%.
Even so, the broader market stayed under strain amid fears that higher energy prices could stoke inflation and push the BCB toward a more hawkish stance. Major banks traded mixed to lower, with Itaúsa down 0.9% and Bradesco slipping 0.3%, while mining giant Vale fell 0.5% on worries over global demand. Persistent weakness in industrial names such as WEG and in consumer-oriented stocks like Ambev also weighed on sentiment. Still, the Ibovespa ultimately tracked Wall Street’s rebound, supported by “buy the dip” flows as investors leaned into the relative resilience of commodity-heavy emerging markets.